Accumulated Benefit Obligation (ABO): An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation.

 

Related Words

Accumulated Benefit Obligation (ABO): An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation.

Maximum Benefit Period (Benefit Duration): This is the maximum length of time for which benefits are payable under the plan as long as the employee remains continuously disabled.

Living Benefits: Life insurance benefits from which the insured can draw cash while still living, usually in the case of some high-cost illness.

Maximum Monthly Benefit: This is the highest dollar amount an employee with a disability can receive on a monthly basis under the Long Term Disability plan.

Limited-Tax General Obligation Bond: A general obligation bond of a government backed by specified or constrained revenue sources.

Moral Obligation Bond: A tax-exempt bond issued by a municipality or a state financial intermediary that is backed by the moral, but not legal, obligation of a state government to appropriate funds in case of default.

Obligation: A legal responsibility, such as to repay a debt.

Net Benefit To Leverage Factor: A linear approximation of a number, that enables one to operationalize the total impact of leverage on firm value in the capital market imperfections view of capital structure.

Lifetime Maximum Benefit Amount: The maximum dollar amount set by an MCO that limits the total amount the plan must pay for all healthcare services provided to a subscriber in the sub-scriber's lifetime.

Minimum Monthly Benefit: There is usually a minimum amount paid as a monthly benefit after reductions for 'Other Income Benefits'.